Thursday, April 30, 2009

Services Sector Liberalisation - All Hype?

I've said my piece with regards to the "much welcomed" services sector ownership liberalisation announcement by the new Prime Minister last week. There was always the question of whether the announcement made, meant more in form, than in substance.

Well, within just a week, the new seemingly influential (lots of statements recently) Deputy Minister for International Trade and Industry (MITI), Datuk Mukhriz Mahathir has official confirmed that it's all just hot air, no more, no less. In a report by The Edge Financial Daily today, Mukhriz not only stated his intent to "defend and promote" the New Economic Policy, he said that the recent "liberalisation" measures announced by Najib was a move to "synchronise what was already happening in the service industry".
Before the prime minister announced the liberalisation of the service industry, meetings were held with bumiputera NGOs and trade organisations to ensure that they were ready to open up the markets...

From the feed back obtained, we realised that the markets
were already open. Only the policies at that time were not synchronised yet." (emphasis mine)
So it was all pretty much a public relations sham. These sectors were in reality already unimpeded by ownership restriction constraints. Hence what Najib announced will have very very little real impact on the industry, if any at all.

14 comments:

Anonymous said...

Tony, how can giving out 9 new licenses have little real impact on the industry ???

If no impact just ask the existing banks to stay on status quo and see what will happen.

Unknown said...

without going into the effectiveness of the 9 new investment banking, insurance licenses, I think the above Mukhriz statement refers to the 27 sub-service sector ownership "liberalisation" and not the new licenses.

Tony

Anonymous said...

Hi Tony,

Can you please check on your MB i.e. Khalid, apparently he is not reviewing any files sitting on his table pertaining to bumi-waiver in selangor. I sincerely hope that Pakatan is not only all talk but no action. We developers are all suffering b'cos of his inaction. I hope you can understand our situation, atleast when BN was in power, things get done for a fee.

Yours sincerely,

Suffering Developer

Anonymous said...

what liberalisation?

"investment banking, insurance licenses..."

Did YB ever hear the "Capital Market Master Plan" announced by Tun Daim Zainuddin in February 2001?

Did YB know there are 3 Phases under the Master Plan?

Phase 1 (2001 - 2003)

Phase 2 (2004 - 2005)

and

Phase 3 (2006 - 2010)

Now is April 2009, less than 20 months before the expiry of 3 Phase...

It is "Time-up" for Malaysia to open it Capital Market.....it is not anything new or additional effort by our "New PM"!


Stupid Malaysian

Anonymous said...

Wayang kulit, you also believe.

Take good care, YB. You are getting a lot more WHITE hair since becoming a MP. Not easy to be a good MP, leh. Will still vote for you the next round...

NEO said...

I have intention to set-up a small manufacturing project in Selangor.

I had signed the tenancy agreement for the factory space in Klang in Nov'08. I have obtained the "Business License" from MPK after waiting for 3 months submission of full documents plus force to paid a RM100 as incentive to MPK officer. (he he my factory rental is running)

Then, I need to obtained a "Surat Sokongan" from Bomba. I have to submit application to bomba office. I was told by the Pengarah that I need to appoint "Bomba Approved List of Contractors" to carry-out the compliance works. When, I settle the payment with the contractor, I asked: "How much?". The contractor replied: RM200 for the Bomba director.

I have also submitted the LWM application with Malaysia Custom Department since 1 April 2009. Now, it is 30 April 2009 and there was no new on my application. But when I attended a "Dialog on LMW organised by EXCO Teresa Kok on 31 Mar 2009, I posted the question to the Timb Pengarah of Custom Malaysia, "What is the time frame required for LMW approval". The replied was "3 days".

Finally, application for "Examption Letter for Having Manufacturing License" from MIDA (agency under MITI). I submitted application in 2007. The director of Life Science told me, I was shares in your company. I asked "How much?". He replied "100%". "Your know, this is Malaysia, I (MIDA Officer) need to present that this is a 100% bumi company, I will help you to get grant, loans and pioneer status."

I rejected his demand and MIDA send my file to recycle bin. Then, Rafidah quit MIDA, Muhiddyin came. I re-submit the application in Nov'08. Than, I was requested by another MIDA director to provide additional information and requirement which "not required" under the requirement of MIDA.

Yesterday, I receive the call from MIDA Selangor that MIDA HQ would like to visit my factory premises before they could issue the Letter. I replied "Ok and welcome"

Summary of the problem.

1. It is all started with local business license from local municipal. But to get this license, you got to purchase or lease the premises.

2. Then, the local municipal will ask you, are the premises with "CF"

3. Then, you have to get clerance from Bomba. (But you have enter into legal binding "Tenancy agreement" already.

4. Then, you got to spend money to rectify all non-compliance works on a building which have "CF" issue by the local municipal.

5. Then, you apply for a LMW license, and the Custom will asked you the CF issue again.

6. Then, you apply for "No Objection Letter from SSIC. And SSIC will required you to get a "Examption Letter for Having Manufacturing License (if your paid-up capital is less than RM500K)or Manufacturing License.

7. So, you got to visit MIDA and MIDA will ask you to show the Business License from the local manucipal.

8. Then, when you show the Business License obtained from the local manucipal..."FUCK". The MIDA officer said:"... the wording use to describ your activity is not mean as manufacturing" "MPK Business License mentioned "Perkhidmatan" ...mean "Services"

All the above is happened in Selangor, after Pakatan take over from BN.

Well. The stupid authorities (both federal and state) could continue to play this game!

I will now move the manufacturing activities to other country, Thailand for example and set-up a marketing centre in singapore (low corporation tax)

Canaan said...

Congrats for the baby!

Anonymous said...

Congratulations Tony and family, on your new born baby boy =)

~ ais

Anonymous said...

I don't mean to be arrogant but I think many are looking at this all wrong.

The impact of most Najib policies except fiscal spending is medium term (and even then, its restrited). Its not meant to have immediate impact.

The idea here is to have a little impact in the short term but when the economy recovers, it should add significant zip to recovery timing it just right for his re-election mode. These licenses don't have significant long term effect but if it adds some punch in in the medium term and its a good publicity tool immediately now, its fits right in with his policies.

Do people really think Najib think of them first? No. His self-interest and self-gratification, with little downside, comes first and foremost - have always been and will always be.

Anonymous said...

Najib announce 100B budget soon.

Anonymous said...

Whether P-R or BN, it's politics. We can never take 100% or be so gullible to believe everything a politician says. Politicians are masters of words of the day. They sing to us what we want to hear & then we "wah, good ah" without giving much thought about it. Every word from politicans the public should take 20% true & scrutinise the 80%. However, at the moment, I believe it is all about ideals. Which at the moment, BN is pretty much screwed up ie. no ideals. A strong private sector will find its own way & adjust itself to whatever is the flavour of the day. All it needs is additional government support - & I mean proper support. M'sia have been going on doing its business with whatever policies that was set. All it need is improvement & throughly executed policies. Good example is the 'KPI'. The PM say 'KPI'...but it seems the rest of the executives don't seem to be very agreeable to it. So, it seems it will be a waste of time. The election results will be the outcome of the KPI's appraisal every 4-5 yr. Actually, what we need is a godo watchdog over the government - which I have to say at the moment, does not really exist, strongly. For this reason, we need to form a shadow gov. Shadow gov gives an opinion in a different perspective. Make the public use the brain a bit more. This is how the society will grow & mature. For a start, our politics must mature. It has to start somewhere. Let's start now. The next thing is liberalisation of the media. This can have a lot of effect towards corruption, etc. Politicians need to be reminded that they are not kings. They are to serve the public. This is where the free-press can apply external pressure. Regrettably, this is not happening coz the editors of mainstream media are like dogs to their masters. So, to cut short, the whole system in M'sia is pretty screwed up. It will continue to be if nothing is done to change that. It is not only the politicians on the other side that can do that - but in fact, it rest in the hands of the people if they want that change. The change can only be supported if the right MP is in place, elected by the people. I am talking too much...got to go.

Khun Pana aka johanssm said...

when BN was in power, things get done for a fee- by "suffering developer"

Please do explain the "fee" in details
We wants to know more.

Anonymous said...

Hi Khun Pana,

We malaysians understand what i mean by "fee". Police take a "fee" to waive traffic fine, bomba take a "fee" to write nice report when a fire occurs (facilitate fire insurance claim), government official take a "fee" to speed up processing time, politician take a "fee" to approve something..the list goes on and on. Haih!!!

The "fee" is stupid and inefficient but as a businessman, no "fee" means no "Go". I would rather have BN back if it means getting things done.

Distressed Developer.

Anonymous said...

Nothing the government ever does will satisfy the DAP. While I too have my fair share of criticism of the government, I would still like to wait and see how all these announcements and policy changes will be implemented. I am willing to give the government a chance before unsheating the sword (if the need arises). The other alternative is for the DAP to take power and do as it pleases.